Asked by Sameeha Riptee on Jun 02, 2024
Verified
An increase in capital increases productivity only if it is purchased and operated by domestic residents.
Capital
Assets used for the production of goods and services, often including things like machines, buildings, and tools.
Productivity
The measure of efficiency of production, typically expressed as the ratio of outputs to inputs in the production process.
Domestic Residents
Individuals who live within a country and participate in its economy by working, spending, and investing there.
- Comprehend the significance of foreign and domestic investments in enhancing a country's economic wealth.
Verified Answer
JC
Jorge Carranza PenaJun 08, 2024
Final Answer :
False
Explanation :
An increase in capital can increase productivity regardless of whether it is operated by domestic residents or foreign entities, as it enhances the productive capacity of the economy.
Learning Objectives
- Comprehend the significance of foreign and domestic investments in enhancing a country's economic wealth.